Zoocasa
Sold Prices
Map
Market Insights
  • Blog Home
  • For Buyers
  • For Sellers
  • Real Estate News
  • Mortgage News in Canada
  • Free Guides (PDF)
  • Real Estate Infographics
Zoocasa
  • Blog Home
  • For Buyers
  • For Sellers
  • Real Estate News
  • Mortgage News in Canada
  • Free Guides (PDF)
  • Real Estate Infographics
Home Guest Posts

Vancouver Condo Market Speculation is Behind High Prices

Which Mortgage by Which Mortgage
December 7, 2017
in Guest Posts, Vancouver Real Estate
Reading Time: 2 mins read
Vancouver condo market speculation
Share1
Tweet
Share
1 Shares

Vancouver’s condo market is heating up, with agents reporting strong demand for pre-sale units from local and foreign buyers.

Condo prices have escalated so quickly that some owners are flipping their units before construction is complete, a tactic which allows foreign buyers to capitalize on price gains without having to pay British Columbia’s property transfer tax for foreign buyers.

Speculation Pushes Prices Higher

Growing speculation has alarmed analysts, who say the trend will further strain affordability for locals and could lead to a crash if market conditions take a turn for the worse.

While prices for pre-sale condos are not public, a new report from Urban Analytics provided to Reuters shows that prices have almost doubled in downtown Vancouver since the end of 2015.

The most in-demand segment consists of small units that appeal to first-time buyers and investors, according to real estate agents.

“The pace of sales right now is like nothing I’ve ever seen before, and I’ve been in this industry for 10 years,” Vancouver agent Amar Pal told Reuters.

Selling Before Completion

Consequentially, the number of available “move-in ready” new condos dropped at one point to a decade low of just 31 units this year, and now sits at 84, down from an astonishing 2,217 in 2013, according to Urban Analytics.

Eager to capitalize on price gains, numerous unfinished condos are being dumped on the shadow “assignment market,” where owners sell their purchase contracts to new buyers, according to numerous agents and industry experts.

The shadow assignment market has created a loophole for offshore buyers eager to avoid BC’s foreign buyer tax, which only applies to land titles (and no land title is generated until construction is finished).

Developers Are Fighting Back

Pre-sale flipping has become so pervasive that one Vancouver developer, Reliance Properties, has changed its policy for buyers of pre-sale condos reselling contracts to other buyers at its One Burrard project. To discourage pre-sale flipping, Reliance Properties said it would take 25% of any profit made from such transfers.

Under pressure to improve affordability for residents and crackdown on unscrupulous practices, the City of Vancouver is considering restricting property ownership by non-permanent residents in its newly unveiled 10-year housing strategy.

Exploring foreign ownership restrictions is one of a number of “tax and financial regulations to limit the commodification of housing and land for speculative investment” proposed in the city’s report. Other proposals include the introduction of a speculation and flipping tax, and reforming federal and provincial tax regulations.

Previous Post

Knockout Listing Alert: 7 Barnfield Crescent

Next Post

Laurentian Mortgage Scandal, B-20 Warnings, and TREB Loses Data Sharing Appeal: Weekly Real Estate News Recap

Which Mortgage

Which Mortgage

Which Mortgage provides readers with a resource for mortgage-related information. The website features useful tools like mortgage calculators, rate comparisons, and a regularly updated news section.   Designed with the first-time homebuyer and real estate investor in mind, Which Mortgage is your one-stop shop for all of your mortgage needs. 

Related Posts

Alberta

Breaking Ground: Alberta’s Clear Advantage in New Home Construction

June 30, 2025
brunch table with different entrees
Alberta

You Can’t Eat Your Way Out of the Housing Crisis

June 23, 2025
Dad and daughter walking dog
Canada

Canadian Cities With the Sharpest Home Price Declines in Spring 2025

June 16, 2025

Blog Search

No Result
View All Result

Newsletter Sign-up

Join a community of 130,000+ subscribers. Don't miss important real estate news, market data, and buying and selling tips.

Recent Articles

A park bench surrounded by lush trees and colorful flowers.

A Perfect Day at Beacon Hill Park: What to See, Eat, and Do  

July 19, 2025

10 Interior Design Styles That Shaped Home Decor Over the Last 10 Years

July 18, 2025
A black house perched on a rocky hill, surrounded by a clear blue sky and distant mountains.

Discover Canada’s Most Unique Homes: 14 Can’t-Miss Properties

July 17, 2025
Two people sitting on beach chairs at the beach

Can You Afford to Live Where You Vacation? Here’s What It Costs in America’s Most Popular Spots

July 16, 2025

Featured Listings

A black house perched on a rocky hill, surrounded by a clear blue sky and distant mountains.

Discover Canada’s Most Unique Homes: 14 Can’t-Miss Properties

July 17, 2025

6 Best Cities for Affordable Luxury Homes in Canada Under $1M

July 10, 2025

5 Canadian Cottage Regions That Make the Perfect U.S. Buyer Getaway 

June 15, 2025

From Skyline Views to Private Escapes: 5 Luxe Calgary Homes for Sale

June 10, 2025
first-time home buyer programs and rebates

Social Media

250 The Esplanade Suite 408 Toronto, ON M5A 4J5

Stay Connected

  • Blog Home
  • For Buyers
  • For Sellers
  • Real Estate News
  • Mortgage News in Canada
  • Free Guides (PDF)
  • Real Estate Infographics
No Result
View All Result

Zoocasa © 2007–2022. The trademarks MLS®, Multiple Listing Service® and the associated logos are owned by The Canadian Real Estate Association (CREA) and identify the quality of services provided by real estate professionals who are members of CREA.